Setting Up a Proposal and Voting Framework for a Memecoin DAO

A memecoin DAO's governance framework is the set of rules and tools that allows token holders to propose, debate, and vote on changes to the project. This includes treasury management, protocol upgrades, and community initiatives. Unlike traditional DAOs focused on complex DeFi parameters, memecoin governance often prioritizes community engagement, marketing decisions, and fun, culture-driven proposals. The core components are a proposal lifecycle and a voting mechanism, typically enforced by smart contracts on a blockchain like Ethereum, Solana, or an L2 like Base.

The technical foundation is a governance token, which grants voting power. A common standard is ERC-20 on Ethereum or SPL on Solana. The voting contract itself often follows a template like OpenZeppelin's Governor contracts. A basic proposal flow involves: 1) A user submits a proposal (e.g., "Spend 10 ETH from the treasury for a marketing campaign") by calling propose() with calldata targeting the treasury contract. 2) The proposal enters a review period. 3) Token holders cast votes, with weight proportional to their token balance. 4) If the vote passes a predefined quorum and majority threshold, the proposal can be executed automatically.

For many communities, using existing, audited platforms is safer than building from scratch. Snapshot is a popular off-chain tool for gas-free, sentiment-based voting. Proposals and votes are signed messages stored on IPFS, with results calculated based on token snapshots. For on-chain execution, Tally or Governor Bravo (used by Compound) provide full-stack solutions. A hybrid approach is common: use Snapshot for signaling and discussion, then execute passed proposals via a multisig wallet or a streamlined on-chain vote. This balances community participation with security and gas efficiency.

Key parameters must be carefully set in your governance contract. The voting delay is the time between proposal submission and the start of voting. The voting period is how long votes can be cast (often 3-7 days). Proposal threshold is the minimum token balance required to submit a proposal, preventing spam. Quorum is the minimum percentage of total token supply that must participate for a vote to be valid. For a memecoin, setting a low proposal threshold (e.g., 0.1% of supply) encourages participation, while a reasonable quorum (e.g., 4-10%) ensures legitimate community backing.

Security is critical. Use timelocks for treasury transactions. A timelock contract delays the execution of a passed proposal for a set period (e.g., 48 hours), giving the community a final chance to react if malicious code is discovered. Always use audited contract libraries and consider a multisig guardian role for the initial phases to pause the system in an emergency. For memecoins, which can be targets for governance attacks, implementing vote delegation (like in ERC-20Votes) allows holders to delegate their voting power to trusted community members without transferring tokens, improving participation rates.

To implement a basic test using OpenZeppelin's Governor, you would deploy a token with ERC20Votes and a GovernorContract. The proposal submission function requires specifying target contracts, values, and calldata. After the vote passes, anyone can call execute to enact the proposal. The code snippet below shows a simplified proposal submission:

solidityCopy
// Pseudocode for proposal submission
function proposeTreasurySpend(address recipient, uint256 amount) public {
    bytes memory data = abi.encodeWithSignature("transfer(address,uint256)", recipient, amount);
    governor.propose(
        [address(treasury)], // targets
        [0], // values
        [data], // calldatas
        "Fund community marketing campaign" // description
    );
}

Start with a testnet deployment using tools like Hardhat or Foundry to simulate the entire governance cycle before going live.

Before deploying a governance system, you must establish the foundational smart contracts and development environment. The core components are a governance token (your memecoin) and a treasury to hold community funds. For development, you will need Node.js (v18+), a package manager like npm or yarn, and an IDE such as VS Code. You must also choose an Ethereum Virtual Machine (EVM) compatible blockchain for deployment; common choices for memecoins include Ethereum, Arbitrum, Base, or Solana (using the Neon EVM). Set up a wallet like MetaMask and fund it with testnet ETH or the native gas token for your chosen chain.

The most efficient approach is to use an audited governance framework rather than writing contracts from scratch. OpenZeppelin Governor is the industry standard for Ethereum, providing modular contracts for voting, timelocks, and proposal execution. For Solana programs, the Realms protocol by Solana Labs offers a similar framework. Install the necessary libraries: for an EVM chain, run npm install @openzeppelin/contracts. You will also need a development toolchain; Hardhat or Foundry are recommended for EVM development, while Anchor is standard for Solana. These tools allow you to compile, test, and deploy your contracts.

Your first coding step is to write and deploy the governance token contract. Using OpenZeppelin's ERC-20Votes extension is crucial, as it provides built-in vote tracking and delegation. A basic token contract might inherit from ERC20Votes and include a mint function for initial distribution. After deployment, you must distribute tokens to the community, often via a claim website or airdrop, as token ownership confers voting power. Ensure you have a plan for the initial token supply and distribution to avoid centralization risks that could undermine the DAO's legitimacy.

Next, deploy the core Governor contract. With OpenZeppelin, you can use the Governor contract factory, specifying parameters like votingDelay (blocks before voting starts), votingPeriod (blocks voting is open), and proposalThreshold (minimum tokens needed to propose). A common setup for a memecoin might be a 1-block delay, a 3-day voting period (approx. 43,200 blocks on Ethereum), and a threshold of 0.5% of the supply. It's critical to also deploy a TimelockController contract and set it as the executor. This introduces a mandatory delay between a proposal passing and its execution, giving token holders a final chance to exit if they disagree with a decision.

Finally, connect all components. Configure the Governor contract to use your token for voting weight and the Timelock as the executor. You must also transfer control of the project's treasury (a multi-signature wallet or a simple Ether-holding contract) to the Timelock address. This ensures all fund movements require a successful governance proposal. Thoroughly test the entire workflow on a testnet: creating a proposal, voting, waiting for the timelock, and executing. Use block explorers like Etherscan to verify contract interactions. Only proceed to mainnet deployment after all tests pass and you have considered security audits for the final contract suite.

Snapshot is an off-chain, gasless voting platform that allows DAOs to create and vote on proposals without spending transaction fees. For a memecoin DAO, this is essential for enabling broad community participation, as it removes the financial barrier to governance. Votes are signed cryptographically using wallets like MetaMask and recorded on IPFS, while the final results are calculated based on a customizable strategy, such as token-weighted voting. This setup provides a transparent and accessible framework for making collective decisions on treasury management, marketing initiatives, or protocol upgrades.

To begin, navigate to snapshot.org and connect your wallet, which must hold the admin rights for the token contract or the ENS domain you wish to use. You will create a "Space," which represents your DAO on Snapshot. The key configuration happens in the Space settings, where you define the voting strategy. For a typical memecoin, this is the erc20-balance-of strategy, which grants voting power proportional to a user's token balance at a specified block number. You must input your token's contract address and the network it resides on, such as Ethereum Mainnet or Arbitrum.

Next, you must configure the voting system and proposal thresholds. Snapshot supports single-choice, weighted, and quadratic voting, among others. For straightforward memecoin governance, single-choice voting (For/Against) is common. You should set a proposal threshold, which is the minimum token balance required to submit a proposal (e.g., 0.5% of total supply), and a quorum, which is the minimum total voting power required for a proposal to be valid. Setting these parameters thoughtfully prevents spam while ensuring legitimate proposals can pass. All these settings are saved in a space.json configuration file stored on IPFS.

Once your Space is configured, you can create your first proposal. The interface allows you to add a title, description, voting options, and a start/end date. A critical step is selecting the snapshot block, a historic block number against which voter balances are calculated. This prevents users from buying tokens just to sway a live vote. After publishing, the proposal is live, and community members can connect their wallets to Snapshot and cast their votes by signing a message, all without paying gas fees.

For advanced customization, you can write custom voting strategies using JavaScript in the Snapshot strategy editor. For example, a memecoin might want to implement a strategy that combines token balance with NFT ownership for voting power. The results of every vote are publicly verifiable on Snapshot's site and via the stored data on IPFS. By completing this setup, you establish a foundational, low-friction governance layer that empowers your token holders to guide the project's future direction collectively.

A clear proposal framework is the operational backbone of any DAO. It standardizes how ideas are submitted, debated, and approved, preventing governance chaos. For a memecoin DAO, this is critical for managing everything from treasury allocations and marketing spends to protocol upgrades and community initiatives. Start by defining the proposal lifecycle: Draft → Temperature Check → Formal Proposal → Voting → Timelock → Execution. Each stage should have clear entry criteria and a defined duration, creating a predictable process for all members.

Proposal templates ensure submissions contain the necessary information for informed voting. A standard template should include: a Title, Summary, Detailed Specification, On-Chain Actions (e.g., target contract addresses, calldata), Voting Options (e.g., For, Against, Abstain), and a Discussion Period link. Using a tool like Snapshot for off-chain signaling or a custom Governor contract (like OpenZeppelin's) for on-chain execution, you can enforce these templates. For example, a proposal to allocate 10 ETH from the treasury for a CEX listing would need to specify the recipient multisig wallet address and the exact transfer function call.

Setting voting requirements determines who can participate and what constitutes a valid outcome. Key parameters include: Voting Delay (time between proposal submission and voting start), Voting Period (typically 3-7 days), Proposal Threshold (minimum token balance required to submit a proposal, e.g., 0.1% of supply), and Quorum (minimum percentage of total token supply that must vote for the result to be valid). A low quorum (e.g., 4%) is common in early-stage DAOs to ensure proposals can pass, but it can be raised as participation grows. These parameters are often set in the DAO's governance smart contract upon deployment.

For on-chain governance, the execution step is handled by a Timelock contract. After a vote passes, there is a mandatory waiting period (e.g., 48 hours) before the approved transactions can be executed. This gives token holders a final safety window to react if a malicious proposal somehow passes. The flow is: Governor contract proposes → Vote succeeds → Proposal queue → Timelock delay → Proposal execution. This delay is a non-negotiable security feature for any DAO controlling substantial assets.

Finally, document everything in your DAO's Constitution or Governance Docs. This should be a living document on GitHub or your forum that clearly outlines all rules, templates, and processes. Transparency here builds trust. A well-structured framework turns the chaotic energy of a memecoin community into directed, accountable governance, enabling the DAO to act decisively while protecting its treasury and long-term vision.

After deploying your memecoin and setting up a Snapshot space for off-chain signaling, the next step is to implement on-chain execution. This is where proposals become binding smart contract transactions. A popular tool for this is Tally, a governance dashboard that interfaces directly with OpenZeppelin Governor contracts. It provides a user-friendly frontend for creating proposals, voting with ERC-20 tokens, and automatically executing passed proposals on-chain. For a memecoin DAO, this framework can control treasury funds, adjust tokenomics parameters, or upgrade contract logic.

The core of this setup is the governance smart contract. You'll typically deploy a contract using the Governor pattern, which defines proposal lifecycle rules: a voting delay before votes start, a voting period for casting votes, and a proposal threshold for submission. For a memecoin, you might use a GovernorCompatibilityBravo contract for its support of the Compound-style governance interface. Your memecoin's ERC-20 contract must also implement the IVotes interface, allowing it to track historical voting power for snapshot-based voting, which prevents manipulation.

To connect this contract to Tally, you must verify and publish it on a block explorer like Etherscan. Then, visit Tally.xyz and use their "Add DAO" wizard. You'll input your Governor contract address, token address, and chain (e.g., Ethereum, Arbitrum). Tally will automatically index past proposals and provide interfaces for creating new ones. When a user creates a proposal via Tally, it stores the target contract addresses, calldata for the function calls, and the ETH value to send, all on-chain.

A critical security step is configuring a TimelockController as the executor for your Governor. The Timelock introduces a mandatory delay between a proposal's passing and its execution. This gives token holders a final review period—often 24-72 hours for a memecoin DAO—to react if a malicious proposal slips through. During this timelock period, the transaction is queued and publicly visible, allowing for last-minute governance actions like canceling the proposal if necessary.

Here is a simplified example of a proposal's journey: A community member drafts a proposal on Tally to send 10% of the treasury ETH to a CEX for a marketing campaign. After a 1-day voting delay, a 3-day vote begins. If the proposal reaches quorum and a majority FOR vote, it enters the 2-day timelock. Finally, anyone can trigger the execute function, which the Timelock will forward to the treasury contract, completing the transfer. This entire process is transparent and immutable.

For ongoing management, use Tally's analytics to track voter participation and proposal history. Consider setting a low initial proposal threshold to encourage participation, but require a high quorum (e.g., 4% of supply) for proposals to pass, ensuring broad consensus. This combination of Snapshot for ideation and Tally for execution creates a robust, two-layer governance system suitable for managing a community-driven memecoin project.

The foundation of any DAO governance system is the smart contract that manages proposals and voting. For Ethereum-based memecoins, frameworks like OpenZeppelin Governor provide a secure, audited starting point. A typical setup includes a Governor contract for proposal lifecycle management, a Votes token (your memecoin) for voting power, and a TimelockController for secure, delayed execution of passed proposals. This separation of powers prevents rushed or malicious transactions. Key parameters must be configured at deployment: votingDelay (time between proposal submission and voting start), votingPeriod (duration of the vote), and proposalThreshold (minimum token balance required to submit a proposal).

For a memecoin community, setting appropriate thresholds is a social and technical balancing act. A proposalThreshold that's too high centralizes power among whales, while one too low can lead to governance spam. A common practice is to set it as a percentage of the circulating supply, such as 0.1% to 1%. The quorum requirement—the minimum percentage of voting power that must participate for a vote to be valid—is equally crucial. An initial quorum of 1-4% of the token supply is typical, allowing for legitimate proposals to pass without requiring unrealistic voter turnout in the early stages. These values should be explicitly documented in the DAO's constitution.

Proposals should follow a standardized template to ensure clarity and fairness. A good template includes: a Title, Summary, Motivation, Specification (with clear, auditable on-chain actions), and Voting Options (typically For, Against, and Abstain). Proposals with on-chain actions must encode the target contract address, calldata, and value (ETH) to be executed via the Timelock. Using a platform like Snapshot for off-chain signaling votes before committing an on-chain proposal is a best practice. It allows the community to gauge sentiment without incurring gas costs, reducing friction for broader participation.

Voting mechanisms must be chosen to align with community values. The simplest is single-choice voting (one token, one vote). However, memecoin DAOs concerned about whale dominance may implement vote delegation (like in Compound or Uniswap) or quadratic voting (where the cost of voting increases quadratically with vote weight) to dilute large holders' power. All voting should occur on-chain for maximum transparency and immutability. Once a proposal passes, the TimelockController enforces a mandatory delay (e.g., 24-72 hours) before execution. This gives token holders a final safety net to react if a malicious proposal somehow passes.

Successful governance requires continuous engagement. Establish clear communication channels for proposal discussion, such as a dedicated Discord forum or Commonwealth.im page. Publish transparent voting records and proposal histories on the blockchain explorer and a front-end like Tally. Governance parameters are not set in stone; the DAO's first major proposal should be to establish a Governance Working Group tasked with periodically reviewing voter turnout, proposal quality, and system parameters. This meta-governance ensures the framework evolves with the community, maintaining its legitimacy as the memecoin project scales.

You have now built the core infrastructure for decentralized governance. The system includes a Governor contract for proposal lifecycle management, a VotingToken for staking and delegation, and a Treasury for executing approved transactions. Key decisions made include the choice of a token-weighted quorum voting model, a 3-day voting period, and a simple majority threshold. This setup balances community accessibility with protection against spam, a critical consideration for a memecoin's often large and active holder base.

With the contracts deployed, the next phase is operational readiness. This involves: - Distributing the governance token to the community via an airdrop or liquidity pool. - Creating a frontend interface, perhaps using a template like Tally or Snapshot, to make proposal creation and voting user-friendly. - Drafting and ratifying an initial constitution or set of governance rules on-chain as Proposal #1. - Setting up multi-signature safeguards for the treasury, requiring a successful proposal for any fund movement.

For ongoing development, consider enhancing the system's capabilities. Implement vote delegation to allow less active holders to delegate their voting power to trusted community members. Introduce a timelock contract between the Governor and Treasury to provide a mandatory review period for executed proposals, adding a critical security layer. Explore gasless voting via signatures (like EIP-712) to reduce participation costs, or integrate with Snapshot for off-chain signaling on complex, non-financial proposals.

Effective governance requires active community management. Establish clear communication channels on Discord or Telegram for proposal discussion. Publish regular governance reports and maintain transparent voting records. Consider creating a small grants program, funded by the treasury, to incentivize community development and proposal submission. The goal is to transition from a developer-led project to a truly community-owned ecosystem.

Finally, continuously monitor and iterate. Use on-chain analytics from Dune Analytics or Nansen to track voter participation and delegation patterns. Be prepared to upgrade the governance contracts via a proposal if scaling issues or new best practices emerge. The most successful DAOs treat their governance framework as a living system, evolving alongside their community's needs and the broader blockchain ecosystem.